Dividend Stocks

Why Are Quantum Computing Stocks ARQQ, IONQ, QUBT Up Today?

Quantum computing stocks are up on major news from an industry leader. Semiconductor producer Nvidia (NASDAQ:NVDA) announced a significant breakthrough today. Along with Rolls-Royce (OTCMKTS:RYCEY) and quantum computing innovator Classiq, the company has achieved something that stands to revolutionize jet engine efficiency. Nvidia laid out the following in a statement on May 21:

“Using NVIDIA’s quantum computing platform, the companies have designed and simulated the world’s largest quantum computing circuit for computational fluid dynamics (CFD) — a circuit that measures 10 million layers deep with 39 qubits. By using GPUs, Rolls-Royce is preparing for a quantum future despite the limitations of today’s quantum computers, which only support circuits a few layers deep.”

This news came out over the weekend, yet it has helped spur a rally for quantum computing stocks so far this week. NVDA isn’t currently rising, but its announcement has pushed several of its peers into the green. On top of it, other positive developments have helped generate further momentum for the sector.

What’s Happening With Quantum Computing Stocks

As impressive as its recent breakthrough is, Nvidia has been trending downward all day, though it still remains in the green for the week. For other quantum computing stocks, though, it has been a smooth ride to the top. Things have gone much better for IonQ (NYSE:IONQ), which has surged about 40% over the past five days. Last week, it announced that its powerful IonQ Aria computer would be available through the Amazon (NASDAQ:AMZN) Bracket quantum computer service, sending shares up.

Quantum Computing (NASDAQ:QUBT) also reported a positive catalyst recently. The penny stock hasn’t been enjoying the same type of growth as IonQ, but it has two reasons to celebrate. Aside from the quantum computing stocks rally, the company has received a follow-on task order to continue supporting NASA in its remote sensing and climate change monitoring. Quantum Computing has high hopes for its work in this field. As Chief Technology Officer Dr. William McGann states:

“Our current prototype systems have shown outstanding performance in both pattern prediction and recognition, demonstrating good potential for sunlight noise removal. Through this project, we hope to prove the concept and develop a roadmap for future large-scale deployment to help NASA and many other potential customers.”

This has also been a good day for Arqit Quantum (NASDAQ:ARQQ), which has risen 2% for the day. Like its penny stock peer QBUT, this company has spent the past week rising steadily as investor enthusiasm for quantum computing stocks continues to mount. This could be a turning point for the industry, especially as Nvidia continues its quest for market dominance. The company is already making significant headways in the artificial intelligence (AI) race, giving investors the type of exposure that they need. Now it is reminding everyone that it should also be counted as a leader among quantum computing stocks. As it rises, smaller cap companies can easily follow, as IONQ and QUBT have proven this week.

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On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.